Theory Questions From University Question Papers
Theory Questions From University Question Papers
Theory Questions From University Question Papers
Financial system
Financial services
Leverages
Instructions:
• Students have to write the points to be covered in the answer for the questions given
below (write points in the notebook). This has to be brought to the class on 9th Feb in
regular class schedule.
• Nine questions of the following are star marked. These questions will have to be
submitted as assignment by 16th Feb 2011 (Wednesday) in the class.
1. What do you mean by optimal capital structure? What is its link with cost of capital?***
2. Explain the factors that affect the planning of the capital structure of the organization.
• Equity shares
• Debentures
• Preference shares
4. “As between under and over capitalization, the former is the lesser evil of the two but still
both should be discouraged and the ideal should be fair capitalization”. Comment.
5. What is over-capitalization? Why does it arise? Explain the corrective remedies for over
capitalization.
6. Differentiate between over and under capitalization. Explain the concept of trading on
equity.***
9. Define financial planning. State its objectives. Explain the various factors which are
required to be considered while preparing financial plan.***
10. Discuss in detail the functions and duties of finance department of a multi-national
company. ***
11. Explain in detail the role and functions of finance manager of a globally diversifies
corporate entity.
15. Explain factoring and hire purchase and venture capital. ***